The Moroccan government has unveiled an ambitious budget project for 2026, amounting to 761.3 billion dirhams (approximately 83 billion USD), representing a 5.5% increase from 2025. This announcement comes despite official forecasts predicting a slowdown in economic growth to 4.6%, down from the 4.8% anticipated for 2025. This information was reported by Forbes Middle East based on a draft submitted to the Moroccan parliament on Monday, October 20.
### Anticipated Economic Slowdown Due to External Pressures
The projected slowdown reflects ongoing uncertainty in global markets, coupled with expectations of an “average” harvest season in Morocco. This poses a concern for a country where the agricultural sector is a key pillar of the economy. Observers warn that these external factors, alongside internal social tensions, may undermine the ability to achieve budgetary objectives.
### Massive Social and Investment Spending to Address Public Discontent
Despite the expected slowdown, the budget project indicates the government’s commitment to increasing spending in vital sectors, particularly health and education, along with reducing regional disparities. These demands have been central to repeated youth protests in various cities due to inadequate public services. The government plans to raise public investments by 12%, reaching approximately 380 billion dirhams (41.3 billion USD), with a focus on major infrastructure projects: ports, airports, and expanding the railway network, in preparation for hosting the 2030 World Cup alongside Spain and Portugal, as reported by Reuters.
### Financial Discipline Despite Ambitions
Despite increased spending, the government emphasizes its commitment to fiscal discipline, aiming to reduce the budget deficit to 3% of GDP in 2026, down from 3.5% in 2025, benefiting from rising tax revenues.
### Balancing Economic Stability and Public Pressure
Forbes’ English edition highlights that the 2026 budget project reflects Morocco’s attempt to balance the need to improve living standards for its citizens, particularly for those affected by the pandemic, with maintaining economic stability and attracting foreign investment, especially with major international events on the horizon. Economists interviewed by the magazine indicate that Morocco is banking on a mix of “strong public investment and fiscal discipline” to ensure investor confidence, while not overlooking the rising social and political challenges domestically.
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